ch9 - ch9 Student 1 The most desirable combination of...

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ch9 Student: ___________________________________________________________________________ 1. The most desirable combination of output attainable with available resources, technology and social values is known as the: A. Economic choice of output. B. Efficient choice of production. C. Preferred output choice. D. Optimal mix of output. 2. If market prices and sales are used to signal desired output, then the optimal mix of output is determined by: 3. Which of the following is an economic justification for a policy of laissez-faire? 4. In a market economy, producers will produce the goods and services that: 5. Market failure occurs when: A. Market prices signal producers to produce the optimal mix of output. B. The economy produces at a point on the production possibilities curve. C. Producers supply the goods that earn the greatest profit. D. An imperfection in the market mechanism prevents an optimal outcome. 6. Market failure means that the economy is definitely producing: 7. Market failure implies that a policy of laissez-faire: 8. Which of the following does not explain why the market sometimes fails to produce the optimal mix of output?
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9. The optimal mix of output is: A. the most desirable combination of output attainable with existing resources, technology and social values. B. an attempt to compare the real worth rather than the market values to various goods and services. C. an exercise to determine if it is better to reduce government expenditures or reduce taxes. D. the most desirable level of the distribution of income.
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